The growing power of generative AI, combined with cooling inflation, is pushing down tech salaries in the United States.
A recent study by recruitment firm Hired found that wages for IT professionals declined 3% compared to last year. When adjusted for inflation, the decline reaches 9%.
Salary reductions aren’t hitting experienced tech workers in the same way as they do with juniors, according to the study. Those with less than four years of experience saw their wages slide by 5% in the past year.
The ill-effects of AI were felt even on job boards. Job postings for tech jobs on Hired’s platform also decreased by 23%.
Generative AI is automating many tasks that were previously performed by human workers. For example, generative AI can be used to write code, design websites and generate creative content. This is reducing the demand for human tech workers in some areas.
Another factor is cooling inflation. As inflation slows, companies are less likely to raise wages to keep up with the rising cost of living.
Despite the recent decline, tech salaries in the United States still average $158,000, more than double the average salary of $78,000 for knowledge workers in the country.